Happy Digital Literacy Day! How Digitally Literate Are You?

Did you know May 31 is Digital Literacy Day in Toronto? As a financial technology company, we at Borrowell think this is an incredibly important day – considering the technological revolution the world is currently experiencing.

Technology is completely changing the way we live our daily lives, how we work, and the way in which we interact with each other and with institutions. What can’t be done online through our phones, computers, tablets, social media and eLearning?

We’re proud that Borrowell itself is a product of this technological revolution. We were the first company in Canada to provide free credit scores online to our customers, with no strings attached! But, to use our free credit monitoring service and receive credit tips and personalized product recommendations – you need to be digitally literate.

What does it mean to be digitally literate?

Being digitally literate means to be competent and have the basic comfort using smartphones, tablets, and computers. This literacy has created a new way to connect to opportunities. It’s important for children and adults alike to learn these skills to not be left behind.

OK, so you’re digitally literate. Congrats! Let’s take it one step further – are you financially literate? Being financially literate means to be knowledgeable when it comes to your finances and that you understand the fundamental facts about money.

But in the ever-changing digital world, you can see how even this definition is changing, too! Being financially literate in the digital age means being comfortable to bank online, use money-saving apps such as Koho, and to monitor your credit score and report.

Why do my credit score and credit report matter?

Your credit score is used by banks, lenders, and financial institutions to determine your creditworthiness. Your credit score might be a deciding factor in whether you’ll be approved for a personal loan, a car loan, or a mortgage.

Having a good credit score will make it easier to do all of these things, and knowing your credit score is the first step to understanding and improving it. Understanding your credit score and what goes into it is important to be financially literate.

Your credit report, on the other hand, is also equally as important and can give you insights into why your credit score is the way it is. You can use your credit report to see:

Missed payments – 35% of your credit score is calculated based on your payment history. The more you pay your bills on time – the better.

Credit utilization – a healthy credit utilization keeps your credit card balance less than 30% of your total available credit. You can keep an eye on your credit utilization using your report.

Monitoring your credit score and report is a great way to improve your financial well-being. In fact, in a recent Borrowell study, we found a correlation between the frequency of credit monitoring and score improvement over time!

Financial literacy plays a big part in overall digital literacy. Ensuring that you have the digital skills to monitor your credit and make smart financial decisions to improve your financial well-being is something to be celebrated.